Lucid Motors has been the talk of the town lately with rumors of going public exciting new and seasoned investors alike. Recent reports from Bloomberg suggested the automaker would merge with SPAC (Special Purpose Acquisition Company) Churchill Capital Corp IV (CCIV). Now, a new report from Reuters said people close to the negotiations are saying the deal will be announced soon and will be valued at roughly $12 billion.
Private companies that prefer to avoid the IPO process turn public by merging with SPACs. A quick scroll through any of Lucid’s verified Twitter feed will show you hundreds of comments begging for the automaker to announce its merge with Churchill Capital Corp IV (CCIV). CCIV was created by Reuters proclaimed “veteran dealmaker,” Michael Klein. Klien has a slew successful SPAC deals under his belt including a $11 billion deal with MultiPlan and another Churchill Capital Corp.
According to the new report from Reuters, Churchill Capital Corp IV will try to raise “more than $1 billion by selling shares in a private investment in a public equity transaction for the deal with Lucid.” The deal will be added to the $2 billion the company raised after a public offering last July. According to the report, the deal could exceed $1.5 billion and could be signed before the end of the month.
Lucid Motors is currently rounding the corner to start deliveries of its all-electric luxury sedan, the Lucid Air and is slated to be huge competition for electric vehicle leader, Tesla. When rumors first started circulating regarding a CCIV and Lucid merge, some decided to take stake in CCIV before confirmation. However, we feel it important to note that Lucid Motors Chairman, Andrew Liver is an operating partner at Churchill Capital IV.
The Lucid Air is available to reserve now with a starting price of $77,400 – or $69,900 after the US Federal Tax Credit of $7,500 – with a reservation fee of just $300. For this, customers can expect 480 horsepower and a projected EPA estimated range of 406 miles on a single charge.